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The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
Air Canada Forward PE Ratio Related Terms
Air Canada Forward PE Ratio Historical Data
* Premium members only.
The historical data trend for Air Canada's Forward PE Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Air Canada Forward PE Ratio Chart
Air Canada Annual Data
Trend
2015-12
2016-12
2017-12
2018-12
2019-12
2022-12
2023-12
2024-12
2025-12
Forward PE Ratio
2.86
3.69
6.93
7.13
10.99
18.90
5.93
8.29
9.10
Air Canada Quarterly Data
2015-12
2016-03
2016-06
2016-09
2016-12
2017-03
2017-06
2017-09
2017-12
2018-03
2018-06
2018-09
2018-12
2019-03
2019-06
2019-09
2019-12
2020-03
2022-09
2022-12
2023-03
2023-06
2023-09
2023-12
2024-03
2024-06
2024-09
2024-12
2025-03
2025-06
2025-09
2025-12
2026-03
Forward PE Ratio
2.86
2.89
2.44
2.90
3.69
5.29
5.86
5.42
6.93
8.67
7.54
7.69
7.13
8.27
10.83
8.91
10.99
10.19
14.81
18.90
53.19
9.77
5.62
5.93
6.65
5.61
5.86
8.29
6.15
9.12
6.70
9.10
11.14
TSX:AC vs DAL, UAL, LUV: Forward PE Ratio Comparison
For the Airlines subindustry, Air Canada's Forward PE Ratio, along with its competitors' market caps and Forward PE Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Air Canada Forward PE Ratio vs Transportation Industry
For the Transportation industry and Industrials sector, Air Canada's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where Air Canada's Forward PE Ratio falls into.
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
Air Canada (TSX:AC) has a Forward PE Ratio of 18.06 as of Jul. 14, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Air Canada and its competitors. According to the industry distribution chart, Air Canada ranks #326 out of 490 companies in the Transportation industry, placing it in the top 66.5%.
Is Air Canada's Forward PE Ratio too high?
Air Canada's current Forward PE Ratio is 18.06. The Transportation industry median Forward PE Ratio is 13.64. Air Canada's value of 18.06 is 32.5% above this industry median. Based on the distribution chart, Air Canada ranks #326 out of 490 companies in the Transportation industry, which is below the industry midpoint. Overall, Air Canada has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Air Canada's Forward PE Ratio compare to DAL and UAL?
According to the Transportation industry distribution chart, Air Canada ranks #326 out of 490 companies for Forward PE Ratio. This places Air Canada in the lower half of its industry. The industry median Forward PE Ratio is 13.64. Air Canada's value of 18.06 is 32.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for a Transportation company?
The median Forward PE Ratio among Transportation companies is 13.64, based on 490 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Air Canada's current Forward PE Ratio of 18.06 is 32.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Air Canada and its competitors. For the Transportation industry, the median Forward PE Ratio is 13.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Air Canada's current Forward PE Ratio is 18.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Air Canada stock overvalued right now?
Based on GuruFocus' analysis, Air Canada (TSX:AC) is currently considered Fairly Valued. The stock's GF Value™ is C$24.28, compared to a current price of C$23.68 — trading 2.5% below its estimated fair value. The current Forward PE Ratio is 18.06 and 32.5% above the Transportation industry median of 13.64. Air Canada's overall GF Score™ is 85/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For Air Canada (TSX:AC), the current Forward PE Ratio is 18.06 as of Jul. 14, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Air Canada (TSX:AC) Overvalued in 2026?
Based on GuruFocus' analysis, Air Canada stock appears to be undervalued.
The current stock price of C$23.68 is trading 2.5% below its estimated GF Value™ of C$24.28.
GuruFocus considers Air Canada to be Fairly Valued.
Key valuation signals for TSX:AC:
Forward PE Ratio: 18.06
GF Value™: C$24.28 vs. price of C$23.68 (2.5% below fair value)
Industry Position: 32.5% above the Transportation median (#326 of 490)
No single metric tells the full story. See the TSX:AC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Air Canada is Canada's largest airline, serving nearly 50 million passengers each year, together with its low-cost subbrand, Rouge, and contracts for regional connection flights into its network. Air Canada is a sixth-freedom airline, which flies many passengers on long-haul trips to and from the US with a layover in Canada.
85GF Score
Get the complete analysis for TSX:AC
Forward PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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